No March increase

Publish date : 08-03-26
North American containerboard producers fail to push through $50/ton price increase in March

SAN FRANCISCO, Mar. 21, 2008 (RISI) - North American containerboard producers failed to push through their announced $50/ton price increase in March against strong resistance from independent converters fearful of their ability to pass through the increase in finished box prices, according to contacts.

But producers will probably push back timing of the proposed price increase and may try again in April although weak box demand in a worsening US economy and the possibility of rising containerboard inventories could make it difficult.

Latest industry statistics showed US mills operated at 97% of capacity in February with inventory levels still relatively low at 4.48 million tons (4.4 weeks of supply), but box shipments on an average week basis were down 3.7% from a year ago and pricing on sheet and boxes has become more competitive as suppliers begin to fight for orders.